LightPath Technologies (NASDAQ:LPTH) used its investor day presentation to outline a multi-year shift from selling optical components to providing higher-value infrared (IR) assemblies, camera systems, and participation in larger defense programs, while emphasizing its BlackDiamond chalcogenide glass portfolio as a key differentiator amid supply chain constraints tied to germanium.
From components to solutions
Management described LightPath as a 40-plus-year-old company that historically focused on molded optical components, where increased industry adoption also pushed pricing lower over time. The company began pivoting toward infrared optics around 2016–2017 with the acquisition of ISP Optics, with the goal of applying molded-optics manufacturing to IR materials.
Management also highlighted a sharp reduction in dependence on China, saying the company previously had about 55% of its business tied to China but is now “nothing or less than 5%,” framing current geopolitics as more favorable to its positioning—particularly because BlackDiamond can be used to design systems without germanium.
Acquisitions and integration
Executives described acquisitions as a central tool to accelerate the shift into higher-value products and to capture what they called a “window of opportunity.” They cited several acquisitions and their strategic intent, including Visimid, G5, and the most recent addition of Amorphous Materials.
Management emphasized that integration and cultural fit are critical, noting that the company has walked away from potential deals when culture did not align. The company said it aims for acquisitions to be “highly accretive,” bringing in both technology and program/backlog opportunities.
- Visimid: Described as adding camera capabilities; management said the companies worked together on the Mantis multispectral camera before merging. The company also discussed the role of the acquisition in positioning for the NGSRI program.
- G5: Framed as enabling access to larger programs and helping deliver amid industry challenges related to germanium availability.
- Amorphous Materials: Presented as expanding IR material breadth and enabling large-diameter optics up to 17 inches, while also providing a second glass manufacturing location as redundancy outside Orlando.
Three growth pillars and market opportunities
LightPath outlined three current “pillars of growth,” each tied to what it described as sizable addressable markets:
- Optical assemblies: The company said it has grown assembly revenue from roughly $0.5 million per quarter in 2020 to more than $7 million, and added that it is now likely higher (management cited “more like $10 million”). It estimated the addressable market for optical assemblies at $500 million to $1 billion.
- Infrared camera systems: Building on G5’s cooled long-range cameras, LightPath described opportunities across fixed and compact systems, additional wavelengths, and multispectral cameras. Management estimated this addressable market at $1 billion to $1.5 billion.
- Large defense programs: These include development funded by customers with production-scale economics. Management cited examples such as NGSRI and the Navy’s SPEAR program, and said a single program could represent $50 million to $100 million per year if a prime contractor wins and production scales.
Management also cited an independent market research estimate that the broader infrared imaging market totals roughly $10 billion to $11 billion annually.
BlackDiamond materials, supply chain, and product roadmap
The company repeatedly returned to BlackDiamond as both a supply-chain and performance enabler. Management said BlackDiamond is not a one-to-one replacement for germanium, but enables designing IR systems without germanium or gallium. Executives argued that glass manufacturing can scale more readily than crystal growth and can be tuned via chemistry, contributing to a significantly broader materials set.
Following the Amorphous Materials acquisition, management said the combined organization now offers close to 20 IR material types—described as the largest selection in the industry—and that it currently has “way more orders than we can make glass for right now,” prompting expansion plans.
On the product side, LightPath discussed cameras such as Mantis, G5’s cooled long-range cameras, and a forthcoming compact camera called CSV Solo. Management also said it plans to redesign G5 cameras so they use BlackDiamond instead of germanium by the end of autumn, with identical size and interfaces and optical performance “at least the same” and sometimes better. The company noted that with BlackDiamond, it may be able to increase a 1,000-millimeter camera design to 1,030 millimeters.
In response to a question about cost implications of replacing germanium, management said that at prior germanium pricing around $1,000 per kilogram it was challenging to compete, but at current pricing (cited as $6,800 per kilogram) it expects to benefit, adding it does not plan to change camera pricing when transitioning to BlackDiamond.
Backlog, cash, and near-term catalysts
LightPath said backlog at the end of December was $97 million and rose to $103 million “as of yesterday afternoon.” The CFO said 85% of backlog is tied to defense, surveillance, security, and public safety, and that 70% of the backlog is scheduled to ship in calendar year 2026. He also noted that commercial orders tend to be shorter in duration and therefore not as represented in backlog.
Executives highlighted counter-UAS as a fast-growing area tied to recent large orders. They discussed programs and deployments involving cameras as a required element of drone detection systems, alongside technologies such as radar and acoustic sensing. Management also said it is shipping first units this month for the Navy’s SPEAR program and expects low-rate initial production (LRIP) “any day,” adding it expects SPEAR to be “up to $20 million a year.”
On NGSRI, management said it had no update and would only share what Lockheed Martin shares publicly, citing sensitivity and strict constraints. It reiterated previously shared economics of $5,000 to $10,000 per missile and potential volumes up to 10,000 missiles per year at full-rate production.
The CFO reported $73.5 million in cash on hand as of 12/31 and said the company paid off a $5.4 million note tied to the G5 acquisition before that date. He said the company expects to be operating cash positive at the operating level in fiscal 2026 (excluding earn-out payments) and said it expects to finish fiscal 2027 “well-positioned on cash,” while noting upcoming “major cash events” including G5 earn-outs and ongoing capex expansion. He also discussed a $65 million raise as improving flexibility for acquisitions and investment.
In Q&A, management discussed acquisition appetite, saying it has an active pipeline and that having cash and a track record of three acquisitions has led to inbound interest. The company also addressed potential implications of the FCC’s proposed restrictions on drones and components, saying the rollout remains uncertain but could create opportunities for LightPath’s small optical assemblies if more camera final assembly shifts to the U.S., and said its manufacturing leadership is tasked with scaling that production in Orlando.
About LightPath Technologies (NASDAQ:LPTH)
LightPath Technologies, Inc designs, manufactures and distributes precision optical components and assemblies for a variety of commercial, industrial, defense and scientific applications. The company’s portfolio includes molded glass aspheric lenses, precision glass optics, infrared lenses and assemblies, diamond-turned optics and molded polymer optics. These components are engineered to support imaging, illumination, laser delivery, detection and sensing systems across visible, ultraviolet and infrared wavelengths.
Among its core offerings, LightPath develops infrared optical solutions using materials such as germanium, zinc selenide and chalcogenide glasses for thermal imaging, night-vision devices and spectroscopy.
